Personal Income Tax

Try Our Personal Income Tax Calculator This guide provides a snapshot of Singapore’s progressive personal income tax system. In this page, we will help you understand the personal tax rates in Singapore, the various tax reliefs and incentives available, as well as the different tax treatments for residents and non-residents. To calculate your personal tax obligations, please try our online Personal Tax calculator.Try Our Personal Income Tax Calculator

Singapore Personal Income Tax structure is one of the friendliest and most competitive in the world. The tax year is from 1 January to 31 December in each calendar year and income is assessed on a preceding year basis.

Key points of Singapore income tax for individuals include:

The amount of income tax that you have to pay depends on your tax residency in Singapore. The taxes for residents are different from non-residents.

Top marginal resident tax rate of 20% kicks in at S$ 320,000 of taxable income.

Non-residents are taxed at the flat rate of 15% or the resident rates whichever results in a higher tax amount.

In general, all remuneration arising from an employment under which duties are performed in Singapore would be fully taxable irrespective of where the funds are made available to you

Besides salaries and bonuses, perquisites such as housing and stock options will form part of your taxable employment income.

Personal Income Tax Rates

Singaporeans whose overseas employment is for a period of at least six months in any calendar year can choose to be treated as a non-resident for the year of assessment following the year of overseas employment. Foreign income received in Singapore is not subject to tax under certain conditions.

Tax rates for resident individuals

Singapore Personal Income Tax Rates

Band (SGD)

Rate (%)

Band (SGD)

Rate (%)

0 – 20,000

0.0

120,001 – 160,000

15.0

20,001 – 30,000

2.0

160,001 – 200,000

17.0

30,001 – 40,000

3.5

200,001 – 320,000

18.0

40,001 – 80,000

7.0

Above 320,000

20.0

80,001 – 120,000

11.5

Note: The above rates are before tax rebate of 30% (below 60 years) and 50% (60 years and above), capped at $1,500. *NEW

Personal Tax for Singapore Residents

Who is a tax resident?

Different tax rates apply for tax residents and non-residents. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

Singaporean; or

Singapore Permanent Resident (SPR) if you have established your permanent home in Singapore; or

Foreigner who stayed/worked in Singapore for 183 days or more in previous year (excludes director of a company).

For Foreigners working in Singapore, the following conditions are also applicable for the taxability of their income in Singapore:

If you work in Singapore for 60 days or less in a calendar year, you will be exempt from tax on your earnings here.This exemption does not apply to non-resident company directors, public entertainers, professionals including foreign experts, speakers, queen’s counsels, consultants, trainers, coaches etc.

If you stay or work in Singapore for 61 to 182 days in a calendar year, your income will be taxed at 15% or resident rates for individuals, whichever gives the higher tax.

If you stay or work in Singapore for 183 days or more in a calendar year, your income will be taxed at resident rates for individuals.

If you stay or work in Singapore for a continuous period of at least 183 days over two years, your income will be taxed at resident rates for individuals.

If you stay or work in Singapore for three consecutive years, your income for all years will be taxed at resident rates.

What is the difference in the tax treatments of a resident and non-resident?

Resident individuals

Non-resident individuals

Taxed progressively

Taxed at 15% or respective progressive residential rate of up to 20%.

Double tax reliefs available

No double tax reliefs

Reliefs available for various taxes such as dependents, child, etc.

Generally no reliefs available.

Exempted from interest income

Interest income from deposits with approved banks is not taxable.

Employment income is taxable.

Employment income from local employment of less than 60 days is exempt from taxation

Income subject to tax

Employment income – Taxable employment income includes cash remuneration, wages, salary, leave pay, directors’ fees, commissions, bonuses, gratuities, perquisites, gains received from employee share plans and allowances received as compensation for services. Benefits-in-kind derived from employment, including home-leave passage, employer-provided housing, employer-provided automobiles and children’s school fees, are also taxable. Certain of these benefits receive special tax treatment.

What is Chargeable Income?

Chargeable income (Taxable Income) is the net income after deduction of expenses, donations and personal reliefs. Personal tax reliefs, subject to conditions, includes support of dependents, academic tuition, professional development expense and premiums paid on life insurance policies.

How is Taxable Income Computed?

The Inland Revenue Authority of Singapore [IRAS] provides the formula in determining the Taxable Income of an individual. It is the following:

Total Income Less Expense = Statutory Income

Statutory Income Less Donations = Assessable Income

Assessable Income Less Personal Reliefs = Taxable Income

What is Total Income?

Profits earned from business, trade, vocation, profession as a partner in a partnership or sole proprietor

Gains from employment (including Benefits-in-kind)

Dividends, Investment income, interests

Rental fees, Royalties, Premiums, and other Profits accumulated from properties

Benefits-in-kind received as part of the employment:

Benefits received in kind are taxable (either fully or partially) and include:

Residential Accommodation

Furniture & Furnishings provided

Food & Clothing, Hotel Accommodation

Home Leave Passage

Motor Car, Driver

Share Options

Interest Subsidy

Income Tax paid by Employer

Insurance Premium paid by Employer if employee is stated beneficiary in the Policy

Subscription, Entrance Fees, Memberships…

What are Expenses?

Employment-related

Rental-related

What are Donations?

Donations made to qualified charity organizations in Singapore.

What are Personal Reliefs?

Qualified course or tuition fees, earned income relief, parent relief and support of dependents, professional development expenses and premiums paid on life insurance policies, and any other special reliefs.

To qualify, working spouse must not
earn more than $4,000 in the preceding year

2,000

2,000

Handicapped spouse relief

3,500

5,500 from YA 2015(new)

Parenthood Tax Rebate

For married tax residents.

1st child

2nd child

3rd

4th

5th & beyond

5,000

10,000

20,000

20,000

20,000 per child

5,000

10,000

20,000

20,000

20,000 per child

Qualifying/handicapped child relief (QCR/ HCR)

For parents supporting children or
caring for handicapped children.

QCR – 4,000 per child

HCR – 5,500 per child

QCR – 4,000 per child

HCR – 7,500 per child from YA 2015(new)

Working mother’s child relief

Applicable even when claims for
HCR and QCR are made.

15% of income

20% of income

25% of income

25% of income

25% of income

15% of income

20% of income

25% of income

25% of income

25% of income

Dependent parents relief

Living with the taxpayer in the same household (each parent)

Not living with the taxpayer in the same household (each parent)

7,000

4,500

9,000 from YA 2015(new)

5,500 from YA 2015(new)

Handicapped Parent Relief

Living with the taxpayer in the same household (each parent)

Not living with the taxpayer in the same household (each parent)

11,000

8,000

14,000 from YA 2015(new)

10,000 from YA 2015(new)

Course fee relief

Actual course fees paid up to a maximum of $5,500 each year

5,500

5,500

CPF cash top-up relief

By self or employer to self’s account

By self to spouse, sibling, parents’ and grandparents’ account

Up to 7,000

Up to 7,000

Up to 7,000

Up to 7,000

Foreign maid levy
(applicable only to working mothers)

Without foreign domestic worker concession

With foreign domestic worker concession

Up to 6,360

Up to 4,080

Up to 6,360

Up to 4,080

Grandparent caregiver relief

3,000

3,000

NSman
(self/wife/parent) relief

Inactive NSman in previous year (non-key appointment holder)

Active NSman in previous year (non-key appointment holder)

Inactive in NSman in previous year (key appointment holder)

Active in NSman in previous year (key appointment holder)

1,500

3,000

3,500

5,000

1,500

3,000

3,500

5,000

CPF relief

Age 50 & below

Age 51 to 55

Age 56 to 60

Age 61 to 65

Above 65

Up to 17,000

Up to 15,725

Up to 11,050

Up to 6,375

Up to 4,250

Up to 17,000

Up to 15,725

Up to 11,475

Up to 6,375

Up to 4,250

Supplementary Retirement Scheme (SRS) relief

Singaporean / Singapore Permanent Resident

Foreigner

Up to 12,750

Up to 29,750

Up to 12,750

Up to 29,750

How Are Employer-Provided Fringed Benefits Taxed?

By laws, all profits and gains obtained by an individual, local or foreign, as a consequence of employment are subject to tax, except, if they are categorically exempted from income tax or are included in an existing administrative concession.

Gains and profits cover all benefits derived in money or in another form, paid or granted as part of an employment. Examples of tax benefits bestowed by an employer are:

Car furnished by an employer

Accommodation and housing allowance

Refunds of medical and dental treatments for dependents beside the income earner [You], spouse, and children

Overtime pay

Fixed monthly meal allowances

Fixed monthly allowance for transportation or if mileage on private cars are reimbursed

Per Diem allowances (such as allowances provided on overseas trips for business purposes), as long as the amount is beyond the acceptable rates.

These fringe-benefits are taxed as soon as they are enjoyed by the employees. Nevertheless, certain non-cash benefits (i.e. accommodations like housing) are taxed using special formulas, known as concessionary basis, leading to lower taxation on these benefits-in-kind. Hence, a separate compensation package has been structured exclusively for executives to help them mitigate on their individual tax liability in Singapore.

Under the Not Ordinarily Resident (NOR) Scheme, you can enjoy either Time Apportionment of Singapore employment income or Tax Exemption of Employer’s contributions to Overseas Pension Fund, or both.

If you work for a foreign employer and need to travel overseas in the course of work, you may enjoy time apportionment of employment income under the Area Representative Scheme.

With the Avoidance of Double Taxation Treaties signed by Singapore, your income may not be taxed twice in Singapore and your home country. (For more information on countries which have Avoidance of Double Taxation Treaties with Singapore, see List of DTA Treaties)

Capital Gains Tax, Inheritance Tax, Estate Duty

Singapore does not have any taxes on Capital Gains and effective 2008; Singapore has abolished Inheritance tax (commonly known as Estate Duty – tax that you have to pay when you die which comes out of the financial estate that you leave behind.)

Singapore does not impose any capital gains tax on personal investment income that arises in relation to real assets, such as property, financial assets, such as shares or bonds, and intangible assets.

Filing Personal Income Tax Returns

Who must file personal tax returns?

If you are an Resident/Employment pass/PEP/Entrepass holder,

If your annual income in Singapore in 2012 is above S$22,000,

If you have received a letter from Inland Revenue Authority of Singapore inviting you to file personal income tax, in spite of the amount your annual income for the previous year.

Employer Responsibility

Personal Tax Filing Due Date:

It is mandatory under law to file for your annual personal tax returns to IRAS by 15 April of every year. IRAS diligently enforces the requirements relating to the filing of the personal tax. Please comply to avoid paying fines and/or court prosecution.

Income is assessed on a preceding calendar year basis, ending 31 December. You must File Your Annual Tax Form by 15 April of the following year. If tax return is not filed by the 15 April deadline, IRAS may raise estimated assessment. You can usually expect to receive the income tax bills from May to August.

Settlement of Personal tax liability:

Paying your taxes: Sign up for the 12-month interest-free GIRO Deduction Plan to pay your income tax by installments. Otherwise, full payment has to be made within one month from the date of the income tax bill.

If the tax is not paid by the due date, a 5% penalty and 1% additional penalty per month up to 12% (total of 17%) will be imposed. In addition, IRAS may take recovery action.

Impose an additional penalty of 1% up to a maximum of 12% on any unpaid tax for each month that the tax remains unpaid;

Direct the taxpayer’s employer to deduct any unpaid tax from his salary;

Direct the taxpayer’s banks, tenants or any third parties to pay any unpaid tax to IRAS from any money held for the taxpayer or due to him;

Restrict the taxpayer from leaving Singapore

Take legal actions against the taxpayer.

Objection to the Notice of Assessment (NOA)

If an individual does not agree with the assessment raised, he / she have to lodge an objection in writing within 30 days from the date of issue of notice of assessment; otherwise the assessment will automatically become final.

Double tax relief and tax treaties

Relief from double taxation is granted on income derived from professional, consultancy and other services rendered in countries that do not have double tax treaties with Singapore. Double tax relief is also available for foreign taxes levied on income taxed in Singapore if Singapore has a tax treaty with the country concerned and if the individual is resident in Singapore for tax purposes.

Singapore has entered into tax treaties with 72 countries.

Individuals who receive employment income in Singapore and who are tax residents of countries that have concluded double tax treaties with Singapore may be exempt from Singapore income tax if their period of employment in Singapore does not exceed a certain number of days (usually 183) in a calendar year or within a 12-month period and if they satisfy certain additional criteria specified in the treaties.

Avoidance of Double Taxation Agreement between Singapore and another country serves to prevent double taxation of income earned in one country by a resident of the other country. It also makes clear the taxing rights between Singapore and her treaty partner on different types of income arising from cross-border economic activities between the two countries. The following are the list of countries with which Singapore has entered Comprehensive Avoidance of Double Tax Agreements:

Our tax team helps locals and expatriates with personal tax advisory and compliance. email us at info@rikvin.com or call us at +65-63034600 to speak to our team.

Disclaimer:
The information contained in this website is for general reference only. While all reasonable care has been taken in the preparation of this information, Rikvin cannot accept any liability for any action taken as a result of reading its contents without further consulting us with regard to all relevant factors

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